Amid the controversial launch of Kanye West\u2019s official memecoin on Solana, the crypto community has sounded the alarm for another potential celebrity token scam, with insider trading allegations outshining Ye\u2019s party.<\/p>\n
On Wednesday night, controversial Hip-Hop artist and public figure Ye, better known as Kanye West, launched his official memecoin, YZY, on the Solana<\/a> blockchain. West announced the token in his X account, posting the contract address (CA) in a picture with the caption \u201cYEEZY MONEY IS HERE. A NEW ECONOMY, BUILT ON CHAIN.\u201d<\/p>\n After the announcement, the memecoin skyrocketed<\/a> to a market capitalization of $3.1 billion before quickly dropping 65% to the $1.1 billion mark in the following hours. Meanwhile, YZY\u2019s price went from an all-time high (ATH) of $3.16 to hover between the $0.95-$1.30 price range.<\/p>\n The crypto community reported multiple red flags, including allegations of insider trading and a lawsuit waiver. Notably, the official website has a controversial waiver that raised concerns among investors.<\/p>\n In the \u201cWhat Else Should I Know?\u201d section, the website stated that by purchasing the token, investors agree they \u201cwill not bring, join or participate in any class action lawsuit as to any claim, dispute or controversy\u201d that they may have against any of the \u201cCovered Parties.\u201d<\/p>\n \u201cif you\u2019re buying this ur literally giving them permission to rug you without consequences,\u201d a community member noted<\/a>.<\/p>\n Nonetheless, investors may opt out of the dispute resolution provision by \u201cproviding written notice of your decision within thirty (30) days of the date that you first access the Website,\u201d the page reads.<\/p>\n Conor Grogan, director at Coinbase, estimated<\/a> that at least 94% of the supply was owned by insiders, with 87% of the token being held by a single multisig wallet before it was distributed to multiple wallets.<\/p>\n According to the \u201cYZYNOMICS\u201d, 20% of the token\u2019s distribution would be for public supply, 10% for liquidity, and 70% for Yeezy Investments LLC.<\/p>\n On-chain analytics firm Bubblemaps affirmed<\/a> that \u201cthe bubble map of YZY mostly MATCHES the distribution on Kanye\u2019s website,\u201d cautioning that \u201cthe 17% address \u2018public supply\u2019 is UNLOCKED and can sell at any time.\u201d<\/p>\n Lookonchain highlighted<\/a> that only YZY had been added to the liquidity pool, with no USDC, warning that the \u201cDev may sell YZY by adding\/removing liquidity, similar to LIBRA.\u201d<\/p>\n Additionally, they noted that multiple insider<\/a> wallets had prepared funds in advance and bought the memecoin, with one address knowing the CA and attempting to purchase YZY yesterday.<\/p>\n The on-chain wallet tracker also cautioned that West had added 30 million YZY, worth $34 million, to the liquidity pool with a price range of $3.17-$4.49, signaling that \u201conce the price climbs above $3.1716, he\u2019ll start earning fees while gradually selling YZY for USDC. If the price rises above $4.4929, all 30M YZY will be sold.\u201d<\/p>\n Investors See Red Numbers<\/p>\nYe\u2019s Memecoin Supply Owned By Insiders<\/h2>\n